28/01/2014
Headlines Flood Re delay threat to owners Update on Flood Re: the joint Government-insurance industry scheme to cap insurance costs for up to 200,000 vulnerable properties: 1. 2. 3. 4. 5.
It could miss its planned summer 2015 launch date by up to a year, leaving thousands of homeowners exposed to large insurance increases It will not cover approximately 9,000 homes, because they are expensive or newly built It will not cover a catastrophic flood, which will ‘primarily’ be covered by the Government It will be funded by home owners, by a £10 per house levy on every home insurance policy It will not cover rented homes, leaving buy-to-let landlords facing insurance hikes. The property industry has urged ministers to rethink to avoid widespread disruption for tenants and councils
Farming Are larger dairy farms pushing out smaller farms? No, according to evidence from DairyCo, even though larger farms have the potential to make higher profits. There is a range of profit levels among farms of all herd sizes - due to management rather than farm size. Decisions on whether or not to remain in the industry are influenced by a range of economic and social factors: key issues were the presence of a successor, education, age, production cost levels and the proportion of family labour employed on farm.
Positive EU view of prospects for farming to 2023 Each year the EU publishes analysis of how it thinks agricultural markets and farm incomes will fare in the next 10 years. Headlines from the latest report are: • Continued high prices over the next decade for cereals, dairy, beef and sheep, driven by strong world demand • Demand for biofuels will continue to drive growth in cereals, although projections will depend on the outcome of on-going talks to limit incentives for 1st generation feed-stocks such as rapeseed • Milk production will be boosted by the end of quotas in March 2015 but this will be constrained by environmental and input cost factors • Beef and lamb production will continue to fall as EU dairy capacity grows, and beef and lamb imports rise. The recession has reduced EU consumption • Pork and poultry meat production will grow in the EU, following two years of falling pork production due to the implementation of new animal welfare rules • Sugar beet production is expected to grow as quotas are phased out in 2017 but the risk to this is the increased substitution of sugar by isoglucose, a starch-based sweetener, by the food industry
CAP post 2013: debate on management details of Ecological Focus Areas continues The EU Environment and Climate Action Commissioners say that pesticides and fertilisers should not be applied to EFAs as it is land dedicated to biodiversity wildlife and that the ‘greening measures’ have been watered down considerably since the CAP agreement was sealed at the end of last year. These details, and others on active farmer and calculating sanctions, will be agreed within the next two months.
Property Issues Fracking: update • •
European shale gas is unlikely to make a material difference to European gas prices, according to the International Energy Agency, even under its ‘golden age of gas’ scenario The Government will publish plans to revise trespass laws to make fracking easier without landowner consent. The consultation is expected in the coming months
Paterson acts on rights of way The Government is planning to give property owners ‘a presumption in favour’ of moving rights of way so that they go around a house, garden or farmyard instead of straight through it.
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28/01/2014
UK election 2015: Labour’s housing policy and £2m mansion tax Labour’s new 'Build First' policy will force councils to include a higher proportion of small sites in their five-year land supply and make it available to small and custom builders. It thinks that the decline in small-to-medium sized builders has had a “serious impact” on the number of homes built, their price and quality. Other issues of housing supply and affordability are being looked at by Sir Michael Lyons and a panel of experts in a housing review. Labour has also pledged to introduce a mansion tax on properties valued at more than £2m.
Amending s106 agreements: ruling axes affordable homes from scheme Albany Homes has won the first appeal since legislation was changed to remove affordable homes from developments that have been made unviable due to the affordable housing requirement.
Scottish planning framework unveiled The Scottish Government’s new National Planning Framework sets out its vision for growth and development across Scotland. It includes 14 infrastructure projects of national significance, and should be adopted in June.
Residential Markets 1m private rented homes ‘substandard’ The IPPR’s Back to Rising Damp report says that privately rented properties are the most expensive yet are in the worst condition, with 1m substandard. It suggests that councils establish community housing agencies to match tenants with landlords. Surely, estate agents could do this if communications were better with councils? Residential market update • The BoE expects house price to climb 10% over the next two years before they then rise in line with earnings from 2016, so about 3% pa • The Daily Telegraph reports that the BoE plans to ‘soup-up’ its range of tools to prevent another housing bubble, which could include the return of the 30-year fixed-rate mortgage • Adam Posen, a former member of the Monetary Policy Committee, has warned that Help to Buy was in danger of creating a new property bubble. • Independent builders are struggling to borrow from banks, threatening house building hopes • David Cameron has promised to cut 100 house building standards to around 10, which is expected to save developers £60m pa and lead to more building.
Environment Government cuts Community Emissions Reduction Obligation for traditional houses The cut in CERO, which is part of the Energy Company Obligation, which we reported on in December, means that fewer solid walled properties will be insulated, as it will be less affordable, so fewer will meet minimum energy performance levels by 2018.
And finally… All things bright and beautiful… Two white 'peace doves' released by children standing alongside the Pope in Vatican City were immediately attacked by a crow and a seagull. The seagull held one dove and the crow pecked repeatedly at the other. Both doves eventually managed to break free, but being pursued and their eventual fate remains unclear. Whilst every effort has been made to ensure the accuracy of this briefing, its information may not be comprehensive and recipients should not act upon it without seeking full professional advice. If you have queries regarding any of the articles, please contact jason.beedell@smithsgore.co.uk (01733 866562) or andrew.teanby@smithsgore.co.uk (01522 507310)
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